Advisers should be paid like doctors: ISA
Industry Super Australia (ISA) has reiterated its calls for advisers to move with haste to a fee-for-service model, with all commission-based fees banned, including on life insurance.
It also argued the welfare of the consumers relies on greater regulatory funding.
In a submission to the Senate Economic Committee's inquiry into the Scrutiny of Financial Advice, ISA said advisers should operate on the same fee model as doctors, with stressing fixed fees would remove advisers' "reliance on incentives or commissions" and "provide consumers with greater transparency in relation to fees and the value of the advice".
It also stressed the banning of all forms of conflicted remuneration is key to advisers' professionalism, as is a raised educational benchmark, comprising of a relevant tertiary degree and further specialist training.
Beyond advice changes, ISA said increased regulatory powers were necessary to ensure fairness and adequate consumer protection.
It said the Australian Securities and Investments Commission (ASIC) should be given more funding to police the licensing system in relation to compensation and develop codes of conduct.
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.